EGA repays $361 million debt ahead of time

The leader in global aluminium production, Emirates Global Aluminium has paid off in full $361 million, which the Mubadala backed company had raised as project finance from 13 banks and export credit agencies. However, these funds were utilized significantly towards the expansion of its Al Taweelah smelter plant in Abu Dhabi.

EGA said in a statement: “The funds relate to two tranches that were taken out, and were repaid four- and seven years before they became due. The early repayment further deleverages EGA and is an important part in the company’s capital structure optimisation strategy.”

The financing of EGA has been narrowed by over $1 billion in the existing two years and now incorporates a senior term loan facility of $5.5 billion. Guinea Alumina Corporation, the subsidiary of EGA has a $700 million project finance facility that was obtained in 2019.

The financing of the project was outstretched to Emirates Aluminium, now an EGA subsidiary, for Phase 1 of the Al Taweelah project in 2010 and later Phase 2 in 2013, each with a stipulated period of 15 years. The repayment of four years and seven years early added $361 million.

Zouhir Regragui, the Chief Financial Officer of EGA, said:  “This further deleveraging simplifies our debt structure and strengthens our balance sheet for the next stage in our corporate journey.”

“We have been able to de-lever successfully in 2021 while generating returns for our shareholders due to the enduring strength of our business and robust demand for our metal.”